Recently, Life Technologies Corporation (LIFE - Snapshot Report) announced that it intends to enhance production of its genetic analysis products by investing $18 million for the expansion of its Pleasanton, Calif. facility. Life Technologies is planning to implement Current Good Manufacturing Practice (cGMP) capabilities at this facility to broaden its portfolio of molecular diagnostic products in order to meet increased demand. The project is expected to take effect in the second quarter of 2013.
As of now, TaqMan assays, GeneArt and Ion AmpliSeq product lines are manufactured at the Pleasanton facility. In the first phase of the project, the company will convert 10,000 square feet of the facility to manufacture molecular probes and primers in compliance with the cGMP standards. Subsequently, the company plans to expand the facility by 30,000 square feet over a span of three years. The expanded facility will be used to produce regulatory-complaint material for qPCR workflows.
The products manufactured at the cGMP-certified facilities have to maintain a high standard of quality and control. As of now, LIFE manufactures a number of products including assays, various reagents, sera, cell culture media and instruments under the cGMP standards and ISO 9001/1348 certification, in nine facilities.
Currently, LIFE carries a Zacks Rank #3 (Hold). Over the last two years, LIFE has been focusing on creating an optimal portfolio of products through innovation and acquisitions. We are also encouraged by LIFE’s strategy to strengthen its presence in the high growth markets such as Latin America, the Middle East, China and India. Over the next few years, LIFE’s focus on developing industry-leading franchises in high-growth technology areas, applied markets and emerging geographies will be the key drivers of long-term growth.
Other medical product stocks are NuVasive, Inc. (NUVA - Analyst Report), DynaVox Inc. and Conceptus, Inc. . While NuVasive carries a Zacks Rank #1 (Strong Buy), DynaVox Inc. and Conceptus, Inc. carry a Zacks Rank #2 (Buy).